A Precarious Situation on Manly Beach

A precarious situation according to the dictionary is when one lacks security or stability, is subject to chance or unknown conditions, or is dependent on the will or favor of another.

Do you recognize a precarious situation brewing for the three blokes and the dog? I snapped this photo while strolling along Manly Beach in Sidney Australia, in the late Summer of 1999. Over the years I’ve used this picture to illustrate lessons in life and business principles.  Although the rationale of the Manly men, at the time was a mystery, I observed curiously as the scene unfolded.  Notice the lead man, forging on with  2×4 stud in hands while his cohort catches some rays and the other scratches his ear questioning their predicament. All of them are seemingly oblivious to their impending dilemma.

Looks like a precarious situation… Within inches of capsizing, their situation lacks security and stability, is subject to chance or unknown conditions, and is dependent on the will and favor of a pit bull.  I’d rather be up a creek without a paddle.

Have you found yourself in a precarious situation –unexpected circumstances or challenges spiraling out of control, placing you in unforeseen circumstances? Certain stuff, we just can’t control.  However self-imposed trials can be avoided. Many problems people endure in life and business are related to apathy, procrastination, or lack of preparation — all of which could entice one to take unnecessary risks. Minimizing risk requires that we anticipate and prepare.

Every day things come up and we decide to react or respond. Overreacting causes rash decisions and subject us to unnecessary risks. When we react, we concede to the control of outside circumstances.  When we respond, however, we’re more in control.  Don’t get me wrong, quick reflexes are good. Reacting fast when a car is barreling down the wrong lane straight toward you demands a quick response. However, reacting and flying off the handle so to speak — saying or doing something you’ll regret later can be avoided. A precarious situation can be avoided by learning how to anticipate and respond to inevitable challenges rather than procrastinate and let problems escalate out of control. Losing control results from a series of bad decisions that could create a precarious situation and the smallest shift could rock your boat or even sink you.

Develop your peripheral vision. Be focused but not myopic.  Although the preceding statement and concept are seemingly contradictory, here’s the point. It is a mistake to allow the fanatical focus to cloud your vision from seeing a genuine opportunity or avoiding a disaster.  If you sell a product or service that’s being phased out because of new technology, take notice.  Change is a constant in business and in life. What if you sold and duplicated cassettes and VHS tapes in the eighties and by the mid-nineties tape got phased out and replaced by CDs and DVDs?  Did you anticipate the change or were you so focused on the day-to-day grind that you missed it? Were you forced to react and sell off the old inventory and lose money rather than anticipate and respond by transitioning slowly?

Investors sank big bucks into stocks during the latter months and days of the tech boom in early 2000 and got crushed when the market crashed. Thankfully I anticipated and missed out on those losses but the real estate bubble blew up in my face. I was not fully prepared in 2007 when my contractor was in the middle of framing two spec homes and the sub-prime mortgage crisis occurred.  I saw the signs in 2006 but did not take heed.

In 2007, a direct sales company I was successful with for over fifteen years began a drastic decline in activity and volume. Over a period of five years, I lost over 75% of my volume and income.  Fortunately was paying attention and noticed the warning signs as early as 2005.  I anticipated change and prepared by educating myself. I diversified my work and identified other opportunities. Peripheral vision paid off.  Keep your options open. Don’t be myopic as it relates to your industry, product, and service.

Watch trends. Anticipate changes and shifts in the market. Develop your peripheral vision. Be aware, anticipate and learn how to avoid a precarious situation.